Which project should the management choose and why

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Reference no: EM131201857

Practice questions:

Film Animation Ltd wishes to expand and has £800,000 to invest. The details of two potential projects are as follows:

	Project A	Project B
	£	£
Sales	318,500	358,000
Cost of sales including expenses	240,500	264,400
Average capital employed	650,000	780,000

Which project should the management choose, and why?

Reference no: EM131201857

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